Supply and Demand

Supply and Demand

I have chosen to write about purchasing a computer. There is such a variety of computers to choose from, and with technology rapidly improving, many factors can be encouraging and discouraging. For example, when I bought my new computer I was very specific in what I was looking for. I wanted a good amount of memory, large monitor, and Windows 7. Of course the price had to be reasonable as well. As a consumer once I found a computer that had all the aspects I was looking for, I did not hesitate in purchasing it. There are factors that change the supply and demand curve for any good or service offered to consumers, that is what makes the manufacture know how much to sell and at what price.

There are many aspects that could affect the demand for computers. For instance, there will be a great demand for computers once college is in session. Consumers are going to be more willing to buy because they are going to need computers to complete their school work. You may see a change in demand when school is on summer break, and students are not in need of purchasing a computer. The holidays would show an upward change in the demand curve, more people will be purchasing computers as gifts. Factors could also positively and negatively affect the supply curve. Price of manufacturing, parts, delivery, sales, and productive capacity could all affect the supply curve. For example, a manufacturer may not supply as many computers when the holidays are coming up, computers will be sold for a lower price, therefore the supply would go downward. If a manufacturer was getting production done at a lower price they might supply computers at a higher price to maximize revenue. Now-a-days people can use substitutions when the price of a necessity good get to high, and we are seeing people use substitutes more and more.

When thinking about purchasing a computer there are a couple different substitutions one could go with if purchasing a new computer was too...